Legislative update
Federal Budget 09
Changes to superannuation legislation were proposed, some of which are now law. For full details, view the Federal Budget 09 section of this report.
New definition of income
This legislative change is not widely known, but is likely to have important implications for some members. It involves a change to the definition of income, which means that salary sacrificing into super can no longer improve eligibility for certain Government benefits, including the co-contribution initiative and tax-deductibility of super contributions which self employed people claim. For these purposes, salary sacrifice amounts made into super are now included in total income. The new definition of income took effect on 1 July 2009, and also relates to other Government benefits not discussed here.
Other legislative changes
The following changes were took effect in 2008/09 were:
- super death benefits can be paid tax-free to a partner in a de facto relationship (including same sex partners), or to a child under 18 of a de facto partner
- super can now be split under family law at the breakdown of a de facto relationship (including same sex relationships), and
- unclaimed amounts for departed temporary residents will also be held by the ATO and can be claimed at any time.
Another legislative change announced in 2008/09, but not yet passed, is the transfer of super balances of less than $200 which have been inactive for five years to unclaimed monies held by the ATO, starting 1 July 2010. Under this proposed legislative change, members will be able to claim these amounts from the ATO at any time.
Long-term returns now on statements
Super funds are now required to include long-term compounded investment returns on member annual statements. Because VicSupers investment objectives are set over rolling 10-year periods, VicSuper has always published both 10 year and five year compounded returns in this report, which well continue to do. Rolling five and 10 year compounded returns are now also published in the explanatory notes section of your Annual Benefit Statement.
Tax thresholds and rates
This table sets out the marginal tax rates and tax thresholds for the 2009/10 and 2010/11 financial years. Movements in rates and thresholds are highlighted.
| Marginal tax rate 2009/10 (%) | Tax threshold 2009/10 ($) | Marginal tax rate 2010/11 (%) | Tax threshold 2010/11 ($) |
|---|---|---|---|
| 0 | 0-6,000 | 0 | 0-6,000 |
| 15 | 6,001-35,000 | 15 | 6,001-37,000 |
| 30 | 35,001-80,000 | 30 | 37,001- 80,000 |
| 38 | 80,001-180,000 | 37 | 80,001-180,000 |
| 5 | 180,000+ | 45 | 180,000+ |